Saturday, February 2, 2008

Marcellus Shale Information

As with much of this blog, information has come through the Wayne County based NWPOA (Northern Wayne Property Owners Alliance)

Also Ross Smith Energy Group RSEG, Instinct ,LLC

Players – Range Resources, Atlas Energy Resources, Southwestern Energy, EDG Resources, Equitable Resources, Chesapeake, Talisman Energy

CNX Gas, Penn Virginia, Ultra Petroleum, (possibly) Phillips Petroleum and PetroEdge have drilled horizontals in NE PA, Rex Energy, Chief Oil and Gas LLC, and Newfield. Not a complete list by any means.

Favorable Properties – High TOC – Total Organic Carbon, Adequate thermal maturity, Significant gas in place, Thickness, Favorable mineralogy, Overpressured, Successful high-rate gas wells.

Immediate post-fracture clean-up is a contributing factor to success. Frac fluid must be cleaned up immediately. Disposal of frac fluids will become an operational issue. There are only three disposal wells in the Commonwealth.

The Marcellus may be stronger in the NE than in the SW due to thicker, deeper shale, more brittle with a higher TOC. Companies are still negotiating 1/8th royalties. NE PA proximity to Millennium Pipeline and major markets make NW Susquehanna County attractive to gas companies. The land owners in the Friendsville Group do not expect anything more than fair economic treatment from any company bidding for a lease.

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